Taiwan carefully considers looming trade negotiations with US

台灣認真考慮與美國即將進行的貿易談判

Observers say Taiwan needs US partnership for regional security


AIPEI (Taiwan News) — Taiwan needs to maintain a cautious approach to trade negotiations with the US to avoid damaging the bilateral partnership, observers say.

On Thursday, the US lowered the tariff on Taiwan from 32% to 10% amid a 90-day pause following Taiwan's submission of an industrial support plan to the US government.

In the wake of Trump’s tariff announcement, President Lai Ching-te (賴清德) said he would not implement retaliatory tariffs toward the US, per Nikkei Asia. Instead, it will engage with the US to resolve any trade issues. Taiwan is included in the list of countries for the first batch of negotiations.

US-Taiwan Business Council President Rupert Hammond-Chambers said, "Lai's approach to foreign affairs is cautious and with a laser focus on US relations first and foremost, and Japan secondly," according to Nikkei Asia. Lai's approach has been welcomed by Republican lawmakers and Trump administration officials, added Hammond-Chambers.

Last week, Taiwan Foreign Minister Lin Chia-lung (林佳龍) said the country would “discuss Taiwan-US economic and trade cooperation in a more detailed and in-depth manner." He added, “We hope to take advantage of the huge US market—their excellent technology, capital, and talent—to form a Taiwan-US coalition: a joint fleet approach.”

For Taiwan, the escalating China threat and rush to build deterrence against a Chinese attack “means a strong partnership with America must be pursued at almost any cost," Hammond-Chambers said.

Former presidential spokesperson and ex-lawmaker Kolas Yotaka said Taiwan could not afford to lose the US as China’s threats to seize Taiwan continue to escalate.

"That's why the foreign policy of Lai and Tsai [Ing-wen] is almost the same: seeking a 'rock-solid relationship' with the US and winning cross-party support in DC," Yotaka told Nikkei. "Whether it's chips, weapons, or energy procurement, the US should have confidence in Lai's government."

However, according to Kuomintang (KMT) media personality and politician Jaw Shaw-kang (趙少康), Taiwan should be more aggressive when dealing with Trump’s tariffs. He recommended that the government “order a halt to all Taiwanese investments in the US,” including TSMC and other related industrial chains.

"We at least need to gain bargaining chips for communication and negotiation with the Trump administration," he said.

Jaw also supported promoting more Chinese tourism to Taiwan and focusing on the Chinese market. "If the mainland is a hostile force, and the US plunders our resources and takes away all the good things, does it count as a foreign hostile force?" he asked. "Lai Ching-te is not in his right mind."

Yeh Chieh-ting (葉介庭), a Taiwanese-American venture capital investor and a board member of US-Taiwan Watch, said the KMT knows how little leverage Taiwan has and how vital the US is for its security. "The KMT is only calling for moves that would escalate tensions with the US because they are in the opposition," he said.